Looking At Expenses

Episode 010

Have you ever considered that by making a few simple changes, you could increase the net profit for your practice? Today on the podcast that’s exactly what I’ll discuss including certain changes you can implement in your dental practice to increase your income.

Specifically I’m sharing two different approaches to help you put more money in your pocket. Get ready to take your practice to the next level on this episode of the Business of Dentistry Podcast!

Man fingers setting cost button on minimum position. Concept image for illustration of cost management.

More About This Show

You might get caught up in the day-to-day routine of operating your practice, but being intentional about your finances is an essential component of running a successful dental practice. There are specific strategies you can apply to your practice, some of which are so simple you might be overlooking them. On this episode I’ll spell those out for you and how you can reap the benefits.

First let’s talk about how you can increase your revenue. Some ways you can generate a larger profit are by taking in more patients, performing more procedures, and working more hours.

By increasing your revenue you obviously gain more profit. However, sometimes this isn’t the best option for your particular business model. If that’s the case, there are still ways you can increase your practice’s net profit.

The second method we look at is trimming the fat—this means taking a good look at your expenses and deciding where you can eliminate or reduce costs. This can be anything from administrative costs to supplies.

In order to cut down on your costs, I recommend looking at all of your overhead expenses for the entire year. This will give you a good idea of where your money is actually going, you will have concrete knowledge of where every dollar is being spent. And you’ll know where you can make reductions and what can be eliminated from your overall expenses. Naturally the more you can reduce in terms of expenses the better net profit margin you will have.

I recommend employing both of these strategies in order to put the most money in your pocket. During this show I also give an example from my own practice, explaining how I evaluated my overall cost on a per-patient basis for each procedure, and how I plan to adjust my fees accordingly.

For more tips on making a larger profit from your practice, and improving your business skills, tune in to this episode of the Business of Dentistry Podcast!

“Understand where your money is being spent.”

 

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2 thoughts on “Looking At Expenses

  1. When you discussed the average supply expense per implant patient, I’m curious if that includes patients referred for implants who didn’t go through with the procedure. If you are looking at supply cost per patient, I am thinking that would include some single implants and some multiple implants if you’re looking at “per patient.” Wouldn’t it be more valuable to evaluate the supply cost per implant placed? I only ask because you inferred that if your average total expense per implant patient is $900 or so, then you might consider dropping an insurance that only pays $1100 (not your actual numbers). But if you’re including some patients that get 4 or more implants then that average expense per patient will be skewed.

    • Scott, My office manager, Paul, collected this data. I will get with him to clarify how he calculated it and let you know. Thanks for your question/comment. It’s making me take another look at this information. Russell